The Market Ticker
Commentary on The Capital Markets- Category [Federal Reserve]

Oh Good Lord....

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with appropriate policy accommodation, economic activity will expand at a moderate pace, with labor market indicators moving toward levels the Committee judges consistent with its dual mandate. The Committee sees the risks to the outlook for economic activity and the labor market as nearly balanced. The Committee expects inflation to rise gradually toward 2 percent as the labor market improves further and the transitory effects of lower energy prices and other factors dissipate. The Committee continues to monitor inflation developments closely.

Yeah, right.

Transitory energy price factors eh?  We'll see on that one; yes, it may well be transitory but if it is the snapback is likely to be really ugly (although a second-half 2015 or later story.)

I find the Fed and Yellen's press conference amusing in the extreme.  Of course the usual pump squad is all over the release trying to further crank up the stock market -- which doesn't surprise me at all, with the SPX now up 40 handles (2%.)

The fun part of this is that (1) thus far it hasn't done a damn bit of good other than cranking the stock and bond markets and (2) there's no evidence that it will in the future.

So what you have here is basically wishful thinking, but heh, candy-crapping Unicorns are all the rage these days......

Go ahead and believe, if you wish..... the fact of the matter is that the market has been in trouble of late not because of The Fed but rather because of weakening global demand that no longer can be denied as it is showing up in energy consumption.

Folks, it's simple when you boil it all down in terms of actual economic activity and forward views of same, as I pointed out in Leverage:  Behind every unit of GDP is a unit of energy.

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